FX168 Financial News Agency (Asia Pacific) reported that on Tuesday (November 26th), US President-elect Donald Trump announced a 25% tariff on all imports from Canada and Mexico, and an additional 10% tariff on Chinese goods. As a result, the dollar strengthened significantly, while Asian stock markets gave back some of the gains from the previous trading day.

Asian stock markets declined, erasing the gains made in the previous trading day when fund manager Scott Bessent was nominated as Secretary of the Treasury. Bessent is seen by investors as Wall Street's representative in Washington. Bessent's appointment also led to a sharp drop in US bond yields as investors flocked to buy government bonds, causing the dollar to slide in the previous trading day.

The Nikkei Index in Japan opened with a sharp drop of 1.4%, erasing the gains from Monday, as investors worried about tariffs on many heavyweight export products in Japan, especially auto manufacturers. Toyota Motor slipped over 2%, while Nissan fell nearly 4%.

Australia's benchmark stock index opened down by 0.69%, after reaching a historic high the day before. The stock market index in Taiwan fell by 0.9%. However, Hong Kong's Hang Seng Index opened unchanged, with mainland blue-chip stock indexes fluctuating between gains and losses.

S&P 500 index futures fell by 0.1%. The Euro Stoxx 50 index futures dropped by 0.9%.

In a post on Truth Social, Trump stated that on his first day in office, he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns about illegal immigration and drug trafficking.

"This is definitely a market shock, putting pressure on Chinese assets, especially the export industry," noted Gary Ng, senior economist at BNP Paribas, "Compared to tariffs on Canada and Mexico, the tariffs on China are relatively small, so investors may still want to see what the follow-up actions will be, and when/if the 60% commitment will be fulfilled."

In the foreign exchange market, the US dollar rose 1.5% against the Mexican peso to 20.5810. The US dollar gained 0.9% against the Canadian dollar to 1.4115. The offshore Chinese Yuan exchange rate fell to 7.2644, earlier touching 7.2730, the highest since July. The Australian dollar dropped by 0.25% to 0.6488, earlier hitting the lowest point since August 5th at 0.64335.

"After nominating Scott Bessent as Treasury Secretary, Trump seems to want to remind the market who is in control - the market had expected Bessent to weaken Trump's power," said Matt Simpson, Senior Market Analyst at City Index. "With the appreciation of the Canadian dollar against the Mexican peso, the market believes Mexico will be the hardest hit."

Senior Forex Analyst Sean Callow of ITC Markets said, "Last month, Trump just said 'the most beautiful word in the dictionary is tariffs', so this statement is not surprising, it's just the timing of the announcement that is unexpected."

"It makes sense for trade-sensitive currencies to depreciate, and this depreciation should continue in the short term," Callow.

In terms of other assets, the US long-term bond yields rose by about 2 basis points to 4.2809%, but did not completely reverse the 15 basis points decline on Monday. The euro fell by 0.2% against the dollar, at 1.0475; the pound fell by 0.17%, at 1.2548. Meanwhile, the dollar fell by 0.3% against the yen to 153.66 yen, after Trump's tariff remarks, the dollar initially rallied against the yen.

Bitcoin rose by 1%, at $94,661, benefiting from market expectations of the Trump administration possibly adopting more lenient crypto regulations.

In terms of commodities, gold fell to a one-week low of $2,605 due to a stronger dollar.

Despite a sharp drop in oil prices on Monday, investors are assessing the potential impact of a potential ceasefire agreement between Israel and Hezbollah on the market. Brent crude futures rose by 0.25% to $73.19 per barrel. US WTI crude oil futures rose by 0.23% to $69.10 per barrel.

London Metal Exchange's three-month copper price fell by 0.4% to $9,010.50 per ton; the most active January copper contract on the Shanghai Futures Exchange fell slightly by 0.1% to 73,900 RMB per ton.